Use the Following Information for Questions 44-46

question 53

Multiple Choice

Use the following information for questions 44-46.
On December 31, 2020, Diaz Corp. is in financial difficulty and cannot pay a $ 900,000 note with $ 90,000 accrued interest payable to Cameron Ltd., which is now due. Cameron agrees to accept from Diaz equipment that has a fair value of $ 435,000, an original cost of $ 720,000, and accumulated depreciation of $ 345,000. Cameron also forgives the accrued interest, extends the maturity date to December 31, 2022, reduces the face amount of the note to $ 375,000, and reduces the market interest rate of 6%, with interest payable at the end of each year.
-Diaz should recognize a gain on the partial settlement and restructure of the debt of

• A) $ 0.
• B) $ 22,500.
• C) $ 112,500.
• D) $ 180,000.

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Definitions:

Logic Circuit

An electrical circuit that performs logic operations, interpreting input signals to produce specific output signals based on logical rules.

Logic 1

A binary state representing a high or true condition in digital electronics, typically corresponding to a higher voltage level.

Truth Table

"A table listing that shows the state of a given output as a function of all possible input combinations."

Truth Table

A table used in logic and mathematics that shows the output of a particular function for all possible combinations of its inputs.